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V O L . X X V I I N O. I I JA N UA R Y 2 5 , 2 0 2 1 12 S O U T H E R N M A I N E F O C U S even for southern Maine and that those bringing high-paying remote jobs ben- efit from "New York pay, Maine living." With many of his clients reporting full plates for 2021, Jean predicts a strong year for the sector, saying: "Where the bubble will stop," he says, "who knows?" Some of the reasons behind the current home-buying — and refi- nancing — frenzy: Pent-up demand and historically low mortgage rates, with the 30-year fixed rate around 2.65% in early January. While southern Maine's rising prices reflect a national trend, the region — greater Portland in particular — has become even more desirable as a refuge from COVID and urban congestion. Realtors expect prices to keep trending higher. "In this market in the past few years, there's been several times we thought we've been at the peak and it keeps going up," says Rachel Davey, associate broker at Vitalius Real Estate Group in Portland. "I anticipate 2021 will be another strong year." Lately, she says she's seen a number of buyers shut out of multiple-offer situations who get burned out, then turn to new construction where there is sometimes less competition. at's also true nationwide, with U.S. housing starts and permits both registering strong growth in the latest Commerce Department report. It shows a 6.2% jump in permits for future build- ing in November from October and 8.5% higher than a year earlier. Housing starts rose 1.2% in November to a seasonally adjusted annual rate of 1,547 million units and 12.8% above a year earlier. In southern Maine, permits for single-family dwellings were up in both counties in 2020 — going from 666 units to 722 units in Cumberland County and from 529 units to 593 units in York County. By constrast, permits for units in multi-family dwellings fell from 814 to 614 in Cumberland County and rose from 95 to 97 in York County last year. Buying land as an option For some eager buyers in today's over- heated market, buying land on which to build like St.Pierre has done is an option. ough not a common one, it's also gaining more traction amid low borrow- ing costs, says Town & Country FCU President and CEO David Libby. "We saw a big uptick in land loans this year, and expect that to con- tinue," he says. at includes land for second homes and camp properties, he says, a good option for buyers who aren't in a hurry. His advice for anyone pursuing that route: Find the right location and contractor. Back in Hollis, St.Pierre couldn't be more pleased with that location of her future house, as the sun starts to go down in the late afternoon. She knows it well from riding all-ter- rain vehicles with her husband and son. She now visits daily, thinking about what she is undertaking with the money her dad left her. "I want to make him proud," she says. Similarly, the developers of the Downs are aiming to beautify their hometown, with a mix of housing and at differ- ent price points as new neighborhoods spring to life. "We've really spent some time fig- uring out now only what the market wants, but we've also come up with a mix of housing types that are good for the tax base and good for the town of Scarborough," says partner Roccy Risbara. Meanwhile at the site, Michaud and M&R Holdings Development Director Dan Bacon describe what the town center residential area will look like when it's done, not far from the old harness racing grandstand that seems out of place. Eyeing wooden frames made of white pine, Michaud remarks, "is is going to be great." R e n e e C o r d e s , M a i n e b i z s e n i o r w r i t e r, c a n b e r e a c h e d a t r c o r d e s @ m a i n e b i z . b i z a n d @ r s c o r d e s » C O N T I N U E D F RO M P R E V I O U S PA G E P H O T O / J I M N E U G E R P H O T O / JA S O N PA I G E S M I T H P H O T O / C O U R T E S Y O F H A N C O C K L U M B E R Developers Dan Bacon, left, and Peter Michaud at a residential construction site at the Downs development in Scarborough. In this market in the past few years, there's been several times we thought we've been at the peak, and it keeps going up. — Rachel Davey Vitalius Real Estate Group Kevin Hancock, chairman and CEO of Hancock Lumber Mike Hammond, president and CEO of Hammond Lumber Co. Lumber suppliers bullish S outhern Maine's home-building and renovating boom is keeping the state's two-biggest family-owned lumber suppliers busy. "With record-low mortgage rates and record-high builder confidence, there is exponential growth in home building and renovations throughout the southern Maine and greater Portland areas," says Mike Hammond, president and CEO of Belgrade-based Hammond Lumber Co. He says the company's Portland branch is one of its busiest, with a strong mix of residential and commercial sales and a 30% sales volume increase last year. Business is so explosive, that Hammond Lumber is planning a 6,000-square-foot addition to its Portland retail space to upgrade its millwork show- room of windows, doors and kitchens. "The expansion is planned for when we can obtain permits," he says, with a start time of about three months from now. Kevin Hancock, chairman and CEO of Hancock Lumber, reports a similar strong start to 2021, with sales at the Casco-based firm up well above 20%. "When COVID-19 arrived in March 2020, no one really knew what impact it would have on our industry, and initially we were prepared for a big slowdown but in hindsight the opposite played out," Hancock says. "The concepts of 'home' and 'sanctuary,' which has always been important, became even more impor- tant. As a result, construction activity – which was already strong before the pandemic – got even stronger." Hancock Lumber employs 565 people across 14 retail and manufacturing sites in Maine. Hancock says the company's kitchen design teams are especially busy, adding, "The family gathers in the kitchen, and the kitchen is also a great long-term investment for the value of any home." He says that while demand remains strong, so do health and safety concerns. "Everyone in the industry is erring on the side of caution, and there may be times this winter and spring when production can't move as fast as normal because companies are rightfully prioritiz- ing safety first," he says. "Additionally, essential workers in our industry are deal- ing with lots of stresses at home beyond work that demand their time and atten- tion and companies want their employees to have as much flexibility as possible right now. All of this can impact normal productivity flow, but this is certainly a time when speed and volume produced must be secondary priorities." Hammond also says employee and customer safety is a priority at his firm, adding, "We are dedicated to serving all of our customers' needs, from contrac- tors to homeowners to do-it-yourselfers, as we continue to navigate the uncer- tainty of each day."

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